ADVERTISING: Consumer Behavior Decision Making. Freud: the Subconscious Early 1900s: –ID, Superego, and Ego –People are driven by instincts not aware.

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Presentation transcript:

ADVERTISING: Consumer Behavior Decision Making

Freud: the Subconscious Early 1900s: –ID, Superego, and Ego –People are driven by instincts not aware of these drives –They have self-protection devices: Rationalization, sublimation, etc These HIDE their real desires –Implications for Advertising ????

Physiological needs

Maslow’s Hierarchy of Needs Self-actualization needs self-development and realization Esteem needs self-esteem, recognition, status Social needs sense of belonging, love Safety needs security, protection Physiological needs hunger, thirst, sex

Safety needs

Social needs?

Which needs?

Behaviorism

Behaviorism: Classical Conditioning Unconditioned stimulus –Sex Unconditioned Response –Arousal Conditioned stimulus –Beer Conditioned Response –Arousal

Alcohol and Sex

Jewellery and Sex

Beer and nationalism

Problem recognition –Motivation Information search –Perception Evaluation of alternatives –Attitude formation Purchase decision –Integration Post-purchase evaluation –Learning [Return or complaints] Cognitive Decision Making

Discussion What was the last product you searched for information on before buying?

Segmentation Identify most relevant variable Product use or motivations differ Divide into HOMOGENOUS segments

Targeting Targeting Criteria –Segment size (Substantial) –Unique (Differentiable) –Cost of marketing (Accesable) (Actionable) –Profitability Competition Growth

Quote of the Day Buy me and you will overcome the anxieties I have just reminded you of. Michael Schudson (Professor)